NBE Cracks Down on Businesses Using Personal or Third-Party Bank Accounts

Addis Ababa, 24 October 2025 — The National Bank of Ethiopia (NBE) has issued a strong directive targeting businesses and individual traders who continue to use personal or third-party bank accounts for commercial transactions instead of their officially registered business accounts.

According to the NBE’s official press release issued on October 24, 2025, the central bank’s recent assessment revealed that a significant number of business entities and traders have been bypassing their business accounts—often to evade tax scrutiny or conceal the true nature of their transactions.

The statement warned that such practices could be linked to illicit financial activities, including money laundering, tax evasion, or the handling of proceeds from criminal conduct. It further underscored that using unauthorized personal or proxy accounts “undermines the integrity of the financial system” and poses risks to the broader economy.

In response, the NBE announced that it will undertake coordinated enforcement actions in collaboration with banks and relevant authorities to curb these practices. All commercial banks have been ordered to collect and report detailed information on business customers and traders suspected of operating through personal or third-party accounts.

The regulator emphasized that this measure is taken under the authority of Proclamation No. 1359/2025, which empowers the central bank to safeguard the financial system from abuse and ensure compliance with anti-money-laundering and tax regulations.

The directive signals a renewed commitment by Ethiopia’s monetary authority to strengthen financial transparency and accountability, particularly within the business sector where informal transactions remain common.

Stakeholders in the banking and business community are urged to review their account practices and ensure all business operations are conducted through the registered business accounts to avoid penalties and regulatory action.